Feranmi Olaseinde
@Feroxide
Joined Jul 3, 2023
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Oct 25, 2023
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Oct 24, 2023
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Oct 24, 2023
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Oct 21, 2023
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Oct 21, 2023
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Oct 18, 2023
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Oct 13, 2023
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Sep 28, 2023
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Aug 16, 2023
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Aug 2, 2023
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Jul 25, 2023
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Jul 22, 2023
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Nigerian banks incur $1billion in loan losses, blame macro-economic conditions
Earlier in the month, the Central Bank of Nigeria (CBN) issued a new circular stopping banks from recklessly spending gains made from forex revaluation.
When Ecobank (ETI) is included the total value of loans impaired rises to N748 billion in the first half of the year.
To curb spiraling inflation, the Central Bank of Nigeria (CBN) has significantly raised its key interest rates, going from 11.5% in December 2021 to a 15-year peak of 18.75%.
Market experts widely anticipate another interest rate hike at the upcoming Monetary Policy Committee (MPC) meeting, which has been rescheduled from its original dates of September 25 and 26, 2023.
Faced with the growing risk of customer default, banks have had to escalate their impairment charges to buffer against potential future losses.
CBN said it took into account the recent FX policy changes that could lead to regulatory breaches such as exceeding Single Obligor Limits (SOL) and Net Open Position (NOP) limits
As a mitigating measure, the central bank said it will grant forbearance to banks that surpass these limits due to the policy change, provided they apply for it